The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1887-12-15
THE USUEY LAW.

The following is summary of the
speech of Representative Brown in the
House Of Representative on the Usuly
Law, delivered Nov. 20, 1887, on the Bill
introduced by Representative Hudgens
of Anderson:
That in 1777 the Act was first passed
reducing the rate of interest to Z per
cent. This continued until 1866, through
a period of nearly ninety years, we'll
evincing the wisdom of this ancient law.
1t is we'll for US some times to look back
and see what those who have gone before
us have done and said. 1t may not be
amiss to read the preamble to this Act
and see if what these legislators said was
true:
"Whereas, by the constant and uni
form experience Of all States and nations
for all ages past, i, has been found that a
moderate and reasonable interest or
annual premium for monies lent on con.
tracts is productive of the most beneficial
effects to State, by promoting the circu-
lation of specie as medium of com.
merce, and rendering the attainment of
money easy to the poor and industrious,
whereby the honest and laborious, being
furnished with the means of labor and
industry, are encouraged to pursue their
respective employments and arts with
diligence and appreciation, thereby CIV
ing rise and progression to the arts,
extending and diffasing trade and com
merce, advancing and improving
agriculture and good husbandry, every
occupation becomes hourishing and sue.
cessful, the strength, wealth, credit. and
power of people is supported and
increased, and peace, plenty, liberty and
happiness become firmly established
amongst them; in order, therefore, to
promote ends so beneficial and desirable
aBe 1t enacted X That no
person from and after the third day of
January one thousand seven hundred
and seventy.seven, upon any contract.
shall take above the value. of seven
pounds for the forbearance of one hun.
dred pounds for one year," &c.
The results which followed proved
them to be true, and the progress and
prosperity during that long period proved
| the wisdom of the law. In 1866 when
there was a common struggle for exis-
tence, when the country was in the
depths of poverty, the law, was changed
with the view of bringing capital into the
country and the door opened wide allow
ing any rate of interest. In 1877 the
war and Radicalism being things of the
past, our Democratic Legislature restored
the Usury law, making, as it were, 9
centennial restoration of this ancient and
wise Law under which many of the mem
bers of this House have lived. 1t was
thought by many at that time to be
unwise, but it is submitted that the surest
test of the wisdom of any law are the
results which follow its passage. The
good results following the passage OF the
Act-of, 1z77~wefe established, and Its
wisdom pioSe En- by keeping of force dur
ing nearly "a century. 1t was only
changed from the force Of circumstances
growing out of disastrous war. Now,
what good results followed the Act of
1877? Very soon the country began to
prosper; thrift and enterprise prevailed;
money began to be plentiful; money was
advertised in the newspapers to loan at
per cent; land in the country was selling
at prices never before known; ordinary
farming lands, uplands, sold at fifteen
dollars per acre; every branch OF indus
try prospered in degree hitherto
unknown. It was, indeed, the golden
era of cur country's prosperity. Now, in
the midst of all this prosperity, this law
for some reason was changed, and the
limit raised to 10 per cent. A brief
period of FIVE years, and on the 22nd day
of December, 1882, without any apparent
good reason, it became one OF the things
of the past 1t is urged upon every
member of this House to look back upon
these times and see if these things are so.
It is said that the law was changed to
allow foreign corporations to lend money
in this State; that they would bring in
capital, make money cheap and develop
1.-THE country. Now to pay interest to
| foreign loan companies makes the coun.
try so much poorer for every dollar OF
| interest 30 paid. But when paid to our
own people the country is just as rich as
it was the morning before it is paid.
Results prove what rate is good and what
| is not. Good results followed the usury
law of 1877 up to the period of its repeal
in December, 1882. Since then the re-
suits have been evil and the country has
lapguished-lands have fallen to half
their former worth, and every material
interest of the country has been suffering.
When interest was low the country pros.
pered; when it was high it lapguished.
The members of this House, who. have
been observers of these results are asked
to support this bill and by their votes
call a halt in this age of progress and
adopt at least one OF the ancient land
marks handed down to us by the fathers
ofthe republic.